AVOD stands for Advertising-based Video On Demand. Unlike SVOD(Subscription VOD) and TVOD(Transactional VOD), AVOD is free to consumers. However, much like broadcast television, consumers need to sit thorugh advertisements. You can see AVOD in action when watching DailyMotion, YouTube and 4OD, where ad revenue is to offset production and hosting costs.

Premium content owners rarely use AVOD as it generates lower amounts of revenue than SVOD and TVOD. It’s interesting to note that YouTube has started to move its subscription-based Premium content to an ad-based model, with reports that the service was slow to catch on with users.

Pluto TV was the first major AVOD tree to fall via Viacom. Xumo was second via Comcast.

AVOD Market Growth Projections

Source: https://www.unreel.me/2018/10/30/streaming-services-scale-ads/